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Piech Wants 13 Brands or More. What Marque(s) is He Targeting?

It never fails that comments made by Volkswagen Group Chairman Ferdinand Piech tend to be dissected to a level nearly unparalleled in the auto industry. Piech is the grandson of Ferdinand Porsche and the main man behind notable happenings as Audi's move to quattro and the Porsche 917. He's been the main catalyst for the surprising agility of the gargantuan Volkswagen Group for many years and often the final decision in many moves by the company. So, when Piech mentions the possibility of adding brands, the press gets awfully interested.

This latest quote comes from an interview with the German monthly magazine ADAC Motorwelt. Piech mentions in the chat that his children 10 years from now will drive one of the car manufacturer's "at least 13 brands". By last count the Volkswagen Group (including Audi, Lamborghini and Ducati) was at 12.

So what brand could Piech have in mind when he makes such claims? VW's chairman has mentioned Alfa Romeo on numerous occasions and is quoted as appreciating its "cult" status. Still, the brand is currently owned by Fiat SpA whose CEO Sergio Marchionne reiterated as recently as last week that the brand is not for sale.

Another theory at thedetroitbureau.com focuses more on Asia. No one can deny the growth in China and the Chinese government has been pressuring car makers to launch domestic Chinese brands. Companies like GM and Nissan have already made such moves, though the Volkswagen Group has made no such move thus far.

That same theory also sites Proton for its presence in Southeast Asia and also its current ownership of the ailing yet storied Lotus brand. This is an interesting theory as well, though rumors back in 2012 suggest Volkswagen already looked at Lotus and decided not to make the move.

On paper Asia makes a lot of sense, though watching Volkswagen's record might suggest otherwise. The company made a failed move to invest in Suzuki and that could have left a bad taste in their mouth. Daimler's own problems in trying to manage a multi-continent union with Chrysler may have also been a consideration, as Volkswagen could have likely stepped in and snapped up the Chrysler portfolio before Fiat was able to do so. Given all this, it is quite possible that Volkswagen has elected to adopt a Euro-centric philosophy. All twelve of its marques hail from Europe.

Going with the Euro theme (and also Fiat), we've made our case for the company to focus more on Fiat's ailing yet still cool Lancia brand whose penchant for engineering, design and motorsport would make it a seemingly perfect fit as a starter brand within the Audi side of the Volkswagen group. Still, even this seems unlikely given the lack of love lost between Marchionne and Piech.

Another way to look at this might be to examine the Volkswagen Group business model of maximizing economies of scale and then applying it to the current portfolio. There are now two commercial truck brands, and now a number of car brands spanning the range of customer pricing needs. Then, there's Ducati - the sole motorcycle manufacturer in the mix. To help raise economies of scale in motorcycle manufacturing, maybe Volkswagen might look toward growing its two-wheel portfolio.

Now, apply Piech's love for icons, the Euro-centric nature of the portfolio and the group's economies of scale production strategy and that offers up an interesting list of potential acquisitions.

The marque that sticks out in our head most (and this is just a guess) would be Vespa. All that said, Vespa is part of the Piaggio Group that owns a mix of reknowned brands like Aprilia and Moto Guzzi, along with lesser-knowns like Derbi, Gilera and Scarabeo. They've also got a commercial division.

So, in the end this is all guesswork. What marques do you think Piech is targeting when he makes such comments?

I wouldn't write off Suzuki - they might find themselves in a spot where they can't get the money they need at a price they need to keep being successful. And, old men eventually die.

I like the Piaggio idea - 2-wheeled transportation will remain important and even grow around the world, and Piaggio may just have the basic engineering just right (plus add VW fuel and EV engine technology). I might be biased on this one, though, since I love Piaggio.

After incessant complaints from a to z, I am now calling all of my characters "special."

May as well. At least if they run into trouble down the road they have 12 other things they can sell to stay alive.

"I don’t want the company to be driven by numbers. I want it to be driven by making better cars and contributing to society. That will turn into profit, which we can use to develop better cars. That should be the cycle, and that will, as a result, build a company with a strong foundation."
-Akio Toyoda

If the guesser - I mean, writer - is correct, then perhaps he's holding DKW as a trump card for Asia and planning on using it as Nissan is using Datsun there. If so, then no matter what happens, he was 'right'.

If the guesser - I mean, writer - is correct, then perhaps he's holding DKW as a trump card for Asia and planning on using it as Nissan is using Datsun there. If so, then no matter what happens, he was 'right'.

I think I was pretty explicit that I was guessing, mentioning that twice in the last two paragraphs. Lucky you called me out though, just in case someone missed that already.

DKW. What's the draw? I've heard the theory, but I'm not sure what the compelling case is.

I wouldn't consider VAG and GM a like. GM sold rebadge cars in same market, while VAG has them spread across the world. Skoda and Seat are not selling in the same market areas. In NA they only have VW and Audi. I dont count Porsche, Lambo, Bentley, Buggati.
GM has Pontiac, Chevy, Buick, Saturn all producing same cars on same platforms to same market. They where essentially competing against each other.

I wouldn't consider VAG and GM a like. GM sold rebadge cars in same market, while VAG has them spread across the world. Skoda and Seat are not selling in the same market areas.

Skoda, SEAT, VW, and Audi all sell in Europe. They have massive overlap. I'd argue that Porsche also overlaps with Audi (Panamera v. A/S8, Cayenne v. Q7, Cayman v. TT-RS, 911 v. R8), and Lamborghini overlaps with it's high end. In Europe, I can't see a person not cross shopping two or more VAG vehicles, in every major category.
Yes, they have differences but so do (did) Chevy, Buick, Pontiac, Saturn, GMC, and Caddy.

Also buying a chinese brand would be stupid. The reason VW, Audi and hell Buick sell so well is that they are not chinese brands, even if they are made in china. Yes, there is a quality issue, but there is also the badge and perceived quality which is probably more valuable.
Plus there are limits on foreign ownership of car brands. Why do you think VWs are built by others there?
Same deal with India.

Skoda, SEAT, VW, and Audi all sell in Europe. They have massive overlap. I'd argue that Porsche also overlaps with Audi, and Lamborghini overlaps with it. In Europe, I can't see a person not cross shopping two or more VAG vehicles, in every major category.
Yes, they have differences but so do (did) Chevy, Buick, Pontiac, Saturn, GMC, and Caddy.

VW fanbois are convinced there is a rivalry between them and Honda.

Oh,I know all about the false sense of entitlement that dubbers share. Annexing and then dissolving Honda is akin to manifest destiny. Once that is accomplished, they will be a shoe-in @ racewars.